This paper challenges the consensus view on the deterioration of European labor market outcomes relative to the United States. When looking at employment to population ratios rather than unemployment rates, I find that the deterioration begins in the mid-1950s and continues through the mid 1990s. I also present evidence to suggest that the key to understanding this deterioration is to understand why Europe has not developed a market service sector similar to the United States.
All Science Journal Classification (ASJC) codes
- Economics, Econometrics and Finance(all)